Global Supply Chain Management Essay

1595 words - 7 pages

SPD4198 Global Supply Chain Management

Lecture 7: Strategic Alliance and Outsourcing
SPEED, HK Polytechnic University

Lesson Seven
Strategic Alliance and Outsourcing
Barilla SpA Part A Strategic Partnership


Barilla Spa Part A
Barilla SpA is the world’s largest pasta manufacturer The company sells to a wide range of Italian retailers, primarily through third party distributors During the late 1980s, Barilla suffered increasing operational inefficiencies and cost penalties that resulted from large week-to-week variations in its distributors’ order patterns

Barilla Distribution Patterns
Barilla Dry Product Factories 65% TL 10% TL 35% TL 18 Barilla-Run Depots

...view middle of the document...

Under the proposed JITD system, decisionmaking authority for determining shipments from Barilla to a distributor would transfer from the distributor to Barilla. Specifically, rather than simply filling orders specified by the distributor, Barilla would monitor the flow of its product through the distributor’s warehouse, and then decide what to ship to the distributor and when to ship it.

Evaluation of the JITD Proposal
Clearly the variation in demand is imposing additional costs on the channel. What do you think of the JITD proposal as a mechanism for reducing these costs? Why should this work? How does it work? What makes Barilla think that it can do a better job of determining a good product/delivery sequence than its distributors?

Two Key Concepts Behind JITD Replace Sequential optimization with Joint optimization
Who will optimize?

Eliminate some of the ‘false economics that drive traditional ordering processes

Implementation Issues: Resistance from the Distributors “Managing stock is my job; I don’t need you to see my warehouse or my figures.” “I could improve my inventory and service level myself if you would deliver my orders more quickly; I would place my order and you would deliver within 36 hours.” “We would be giving Barilla the power to push products into our warehouse just so that Barilla can reduce its costs.”

Implementation Issues: Resistance from Sales and Marketing
“Our sales levels would flatten if we put this program in place.” “How can we get the trade to push Barilla product to retailers if we don’t offer some sort of incentive?” “If space is freed up in our distributors’ warehouses … the distributors would then push our competitors’ product more than ours.” “… the distribution organization is not yet ready to handle such a sophisticated relationship.”

How Can Maggiali Solve the Implementation Problems? Demonstrate that JITD benefits the distributors (lowering inventory, improving their service levels and increasing their returns on assets); Run experiment at one or more of Barilla’s 18 depots Maggiali needs to look at JITD not as a logistics program, but as a company-wide effort; Get top management closely involved Trust

Activity 1 How do you evaluate the implementation process Barilla used with Cortese?


Strategic Partnering
Types of SP:
Quick Response: Vendors receive POS data from retailers, and use this information to synchronize production and inventory activities at the supplier. In this strategy, the retailer still prepares individual orders, but the POS data is used by the supplier to

improve forecasting and scheduling.

Milliken and Company: The lead time from order receipt at Milliken’s textile plants to final clothing receipt at several of the department stores involved was reduced from eighteen weeks down to three weeks.

Strategic Partnering
Continuous Replenishment: Vendors receive POS data and use it prepare shipments at previously...

Other assignments on Global Supply Chain Management

Supply Chain Management-Checkers Essay

3649 words - 15 pages Checkers Management 212- Essay 1 Word count: 2887 Table of Contents 1. Introduction: 3 2. Checkers Supply Chain network: 3 3. Typology of Checkers: 7 4. Comparison of the Checkers to a smaller retailer 10 5. Conclusion: 12 LIST OF REFERENCES: 13 PLAGIARISM DECLARATION 14 1. Introduction: This essay will be focusing of the supply network of checkers supermarket that is operated by the Shoprite holding Ltd is

Operations And Supply Chain Management Essay

4042 words - 17 pages Chapter 01 Operations and Supply Chain Management Learning Objectives for Chapter 1 1. Understand why it is important to study operations and supply chain management. 2. Define efficient and effective operations. 3. Categorize operations and supply chain processes. 4. Contrast differences between services and goods producing processes. 5. Identify operations and supply chain management career opportunities. 6

Louis Vuitton Supply Chain Management

819 words - 4 pages 20 years. However, the company faces a lot of challenges with respect to optimizing its supply chain so as to ensure mitigation of losses on account of lost sales & stock outs. We have identified the following challenges: The time for the raw materials to get from the supplier to the facilities is very long. However, because LV stands for high quality of the goods, this is a factor the company does not wish to compromise on The time it

Supply Chain Management Term Paper

4874 words - 20 pages Supply Chain Management Final Paper Name: Student ID: Instructor: [Abstract] With the updates of music carriers, the market of headsets expanded quickly. Using the in-ear headsets as a sample product, this paper works on the requirements, souring, logistics, sustainability and costs of the product, and finally works out a supply chain for this product. [Keywords] Supply chain management, headsets Overview Product

Dss In Supply Chain Management And Design

2843 words - 12 pages Topic: Decision Support Systems for Supply Chain Management and Design A. Summary: Supply chain management (SCM) has evolved to become an integral part of the operations management. SCM can have tremendous impact on organizational performance in terms of cost, quality, flexibility an responsiveness in the global market. Companies are investing in data driven decision support application frameworks to help then response to the changing

Supply Chain Management Of Pizza Hut

455 words - 2 pages has established its strategy to be “We want to satisfy our customer by offering them the best” and its famous slogan C.H.A.M.P.S “Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed”. And to meet customers’ needs fulfillment and highly quality requirements. The professionalism in applying the Supply Chain Management. The serve of different products (Sauteed Pastas, Beverages, Appetizers, Soups and Salads, Pizzas, Desserts

Supply Chain Management

3586 words - 15 pages : MANAGEMENT From: HEAD OF CONTRACTS Subject: THE SUPPLY OF TOILETRIES BY MR ABIOLA IBADAN TO GHANA TECHNOLOGY UNIVERSITY COLLEGE (GTUC) AND ITS RELATED CONTRACTUAL ISSUES. Date: 11 April 2015 1.0 INTRODUCTION. Mr Abiola Ibadan has been supplying toiletries to the Ghana Technology University College (GTUC) for a period of three (3) years and had agreed to a draft contract proposed by the university. Even though a proper contract was not signed

Supply Chain

1621 words - 7 pages SUPPLY CHAIN MANAGEMENT Objective • Maximise the overall value generated – is the difference between what the final product is worth to the customer and the effort the supply chains expends in filling the request of the customer • Supply chain profitability is the difference between the revenue generated from the customer and the overall cost across the supply chain • It is the total profit to be shared across all supply chain stages • Supply

Key Supply Chain Issues

746 words - 3 pages weeks of inventory in the pipeline are factored into general landed cost calculations. Currently there are analysis going on over the supply and chain management changes in SCC (supply chain council). SCC is working on various advancements on the issues of supply chain challenges, which are affecting the global economy and markets. The SCC is aimed at advancing the supply chains acknowledgement, and its application to solve the real world

Conclusion And Future Model For Supply Chain - Toyota

528 words - 3 pages , reducing dependence on any one form of logistics model (e.g., air freight, rail, road transport) would have a significant impact. Although this is not easy for global sourcing, supply risk reduction can protect automotive organization by developing alternative sources of domestic supply to complement global ones. Conclusion The most value-add fix to the supply chain is sufficient contingency planning and managing the complexity of the supply chain. The development a risk management strategy that will work is necessary to create a shared organization-wide understanding of supply-chain risk. Japanese Auto Supply Chain System

Supply Chain Risk

1558 words - 7 pages , but it is not necessarily how big the risk is, but how fast a business can return itself back to normal. This paper will provide details of what risks are within the supply chain, the effects those risk can cause, and how it proper risk management can help minimize those risk making them more tolerable. The information provided has been taken from sources such as the FM Global and the book Diagnosing Greatness: Ten Traits of the Best Supply

Similar Documents

Global Supply Chain Essay

3989 words - 16 pages two tasks, one of which involves a critical evaluation of the application of Lean and TQM (Total Quality Management) in logistics and supply chain networks to achieve MPA objectives such as quality of service, competitiveness, reliability and efficiency. In addition the benefits and limitations from a practical perspective for MPA is evaluated. The second task of the paper aims to critically evaluate the key environmental sustainability issues in

Green Supply Chain Management Essay

4001 words - 17 pages Supply Chain Management I White Paper ABOUTMPHASIS. MphasiS and the MphasiS logo are registered trademarks of MphasiS Corporation. All other brand or product names are trademarks or registered marks of their respective owners. MphasiS is a $1 billion global service provider, delivering technology based solutions to clients across the world. With over 41,000 people, MphasiS services clients in Banking & Capital Markets, Insurance

Supply Chain Management Essay

3093 words - 13 pages SIBM,Bengaluru | Supply Chain Management | Assignment :Set 1 | | Karthik Periyasamy P 14020841020 Question: 1 You are the manager of Strategic Sourcing at Toyota Motor Corp and have just been called by the VP of global sourcing to whom you report. There has been a problem with the least 8 vehicles exhibiting sticking accelerator pedals and your boss is upset. Strong Evidence points to a problem with CTS, an electronic supplier

Supply Chain Management Essay

417 words - 2 pages Introduction The supply chain management (SCM) is a set of management functions that are applied for the purpose of integrating the chain members (suppliers, manufacturers, distributors, retailers and end users). This in turn will have its effect on reducing system costs and increasing customer service quality level and produces effective use of the supplier base in order to facilitate supplier relationships and to develop strategic